ASSOCIATED CEMENT ROHRI COMPANY HANDED OVER TO NATIONAL TRANSPORT FOR RUPEES 255 MILLION

Islamabad, December 11, 2003

Dr. Abdul Hafeez Shaikh has said that the country's Privatisation Program was aimed at generating new job opportunities and for the benefit of the common man. The Federal Minister for Privatisation and Investment was addressing the agreement signing and handing over ceremony of Associated Cement Rohri Company to the representative of the successful bidder National Transport Company Syed Shoaib Khursheed here today. PC has so far realized Rs. 17 billion plus through privatisation process, including the sale of AC Rohri in the first year of the government.

The Minister said that the Government was determined to accelerate the pace  of privatisation with utmost transparency and to bring in the efficient private sector for the economic revival and growth, which would ensure improvement in the quality of services through transfer of latest technology by the professional private management. We would never sell our national assets in haste and on throwaway price and there would be no compromise on our national interests, he added.

He said that the announcement by the new buyer for reviving the unit and to  start its operation soon would give boost to the economic activity in the area and it would provide job opportunities to around 250 individuals. The buyer has completely paid the offered bid amount Rs. 255 million to PC on December 1, 2003.

The open bidding for the sale of the assets of Associated Cement Rohri Limited, a unit closed for the past five years, was held on August 28, 2003. The Unit was offered free from all liabilities and it received the highest offer of Rs. 255 million from National Transport Company, Karachi, which was approved by PC Board and CCOP respectively. PC had received 25 Expression of Interest for the sale of the assets of Associated Cement (Rohri) Limited, which has a production capacity of 270,000 Metric tones per annum.

The parties, which took part in the open bidding process for the sale of the assets of Associated Cement Rohri Limited after depositing the earnest money of Rs. 250 million were 1. A A Enterprises, Karachi, 2 Al-Hamza Ship Breaking Company, 3. Bestway Cement Limited 4. D. G. Khan Cement Company, 5 Export International, 6. Jamal-ud-din & company, 7. Meezan Ship Breaker, Kyc, 8. National Transport Company, Karachi, and 9. Suresh Kumar & Brothers.

AC Rohri owns about 195. 3 acres of purchased land (which includes some portion which are encroached). It also owns 24.45 acres of agriculture land located in the vicinity. The plant is located on an area of about 36 acres. Of the land under residential colony, 127 acres are well developed. All required infrastructure facilities are also available on the site. The factory is located 7 k.m. from Sukkur in the Sindh Province. The payment of the Golden Handshake to its employees has already been finalized without any burden on the buyer. The factory was closed down in 1999.